The Australian Competition and Consumer Commission said on Thursday it would not block Nine’s takeover despite acknowledging that it would reduce competition.

The ACCC chair, Rod Sims, said the merger would “likely reduce competition” but added that it was not “likely to substantially lessen competition in any market in breach of the Competition and Consumer Act”.

“This merger can be seen to reduce the number of companies intensely focusing on Australian news from five to four,” he said. “Post the merger, only Nine-Fairfax, News/Sky, Seven West Media and the ABC/SBS will employ a large number of journalists focused on news creation and dissemination.”

The Nine network welcomed the decision by the regulator and is now concentrating on winning the support of Fairfax shareholders later this month.